BMA stops production at central Qld mine

The BHP-Billiton Mitsubishi Alliance (BMA) says it will cease production at one of its seven central Queensland mines.

BMA says the open-cut Norwich Park mine near Dysart has been losing money for several months.

It says reduced production due to last year's floods, cost increases and lower coal prices are to blame.

BMA says recent industrial action at the mine has also had an impact, but the Construction, Forestry, Mining and Energy Union (CFMEU) says the action would have had little impact on the decision.

In a statement, the company says the decision to stop production follows a seven-week review of the mine's viability which was unable to find an immediate way to return to profitability.

BMA says it will not restart operations until it finds a solution.

The company says some workers will be redeployed to its nearby Saraji mine to allow them and their families to continue living in Dysart.

The CMFEU says several hundred workers will be affected by the closure.

Spokesman Steve Smyth says the union's priority is to look after the 340 full-time BMA employees.

"Any mines within the BMA group - and there are a lot of vacancies there at the moment - people could be redeployed to those operations," he said.

"Logistically you've got to look at the accommodation arrangements, the travel and all that, but there is the ability there for our members to be redeployed to those operations and obviously Saraji is in the immediate vicinity and it makes sense."

Mr Smyth says it is also a blow to the region.

"It'll be a kick in the guts for the town of Dysart," he said.

BMA asset president Stephen Dumble says a review left the company with no other option.

"This has been a difficult decision for us and it's a particularly difficult decision for all of our employees," he said.